The reforms include regulating stablecoins for payment and creating a sandbox where firms and regulators can test new financial technologies.
Jeremy Hunt, the Chancellor of the Exchequer of the United Kingdom, announced a number of reforms intended to “drive growth and competitiveness” to the nation’s financial services industry.
These initiatives include actions that support the cryptocurrency sector. The UK announced in a statement. The government emphasized that it would develop a more intelligent regulatory system for the nation that would be “agile, less expensive, and more sensitive to evolving trends.”
The announcement touches on a number of issues, such as consulting on ideas for the creation of a Central Bank Digital Currency (CBDC), extending a cryptocurrency tax break for investment managers, bringing stablecoins under regulatory control, and developing a sandbox that would allow businesses and regulators to test out new technologies that could revolutionize the financial markets.
All of these are included in the Financial Services and Markets (FSM) bill, which was previously unveiled in October. The adjustments, in Hunt’s opinion, will demonstrate the U.K.’s position as a fiercely competitive center for international financial services. He detailed this:
“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.”
Hunt also pointed out that the government will continue to implement measures that hinder the growth of other sectors like digital technology and the bio sciences.
The UK’s Economic Secretary to the Treasury, Andrew Griffith, predicted that the amendments would result in more intelligent financial services regulation. This “will unlock growth and opportunity in towns and cities across the U.K.,” according to the government source.
On November 4th, the UK The government began investigating nonfungible tokens (NFTs) as the industry expanded. Before the U.K. can conduct a review, members of the Digital, Culture, Media and Sport Committee (DCMS) in the U.K. launched a public inquiry to evaluate NFT assets. Treasury.
